Cory on Buy Now Pay Later and Hobby Spending

[PineSong]

Not sure if this is the appropriate place to say so, but I was watching Cory's recent video on YT and want to give him a thumbs up for saying that he doesn't want to support people being in debt to make hobby purchases. So Cory, if anyone is grumpy about it, here's someone who supports that reasoning.

[lefty o]

about the only thigs in life one needs to pay interest on are house, and car loans. no point in paying interest on stuff that you can get if you just save up for it. never buy things you dont absolutely need to survive, if you dont have the funds for it, good way to go broke, and stay broke. of course, not every one thinks like i do when it comes to money.

[Brandon p]

They may not think like you but many people would be better off. I have lived this way with the exception of some furniture when I got married. The only positive is I still use it in the den 22 years later. It was was a mistake then then and happened to work out but my grands father though me if you can’t pay for it now you don’t need it. 
 

Edit: I didn’t say that it was refurbished. It’s black leather and that is still original I did have the padding replaced about 5 years ago. 

Edited July 12, 2022 by Brandon p

[Torrey]

I was thrilled to tune in just in time to see Cory say that, as well. Debt is a vicious cycle, and it's designed that way on purpose. Criticizing it is easy, refusing to support it/be a part of the cycle is a risk, and I am thrilled to see a business that lives its principles.

Oh wait, that's how Cory got me interested in the Co-op to begin with.🧐

[TeeJay]

I agree completely. I am one I know it it was an option I would probably be tempted to use it. I know it's in my own controll what I purchase and what I don't. But when options like that are available it's easy to say " oh only a few small payments" no biggie. Then it's a snowball effect. I'm glad he will not allow this for folks like me that may be tempted. 

[Flumpweesel]

There is a tank company here that does lovely solid oak stand all bespoke to their tanks they are always offered monthly payment terms because they are very expensive but the installment plan makes them almost an impulse by.

Browsing the second hand sites shows what a mistake that sort of impulse can cause. 

I was raised that credit is for emergencies and paid off as quickly as possible. 

[lefty o]

On 6/25/2022 at 4:25 PM, Flumpweesel said:

There is a tank company here that does lovely solid oak stand all bespoke to their tanks they are always offered monthly payment terms because they are very expensive but the installment plan makes them almost an impulse by.

Browsing the second hand sites shows what a mistake that sort of impulse can cause. 

I was raised that credit is for emergencies and paid off as quickly as possible. 

i used to be pretty much cash only, but have switched to credit cards mostly. the key thing with a card is to treat it like cash. if you cant pay it off every month, dont use it. zero point in paying interest on something you dont really need.

[pcb09]

This type of fiscal policy / standards would serve many people well with where the economy is headed.

[CKetchum]

I am a zero CC person! No debt, other then a car payment.  I have very little CC history which is unfortunate b/c it doesn't help my "score" for large purchases, like my car for instances. I don't have bad credit, just no/little CC history.  What's a single income family to do? 🧐

[BeeD]

It's a debt economy. GenXers, Millennials, and Zoomers are living in the wake of Boomer debt-excess, and they don't know how to deal with it. The way to deal with it is to not support the debt system. I just don't think many people want to live that way, or they've already dug themselves down. I don't know how many Zoomers are in this forum, or how many of you have kids, but every time I talk to younger people I tell them get roommates, share the costs, enjoy yourselves but SAVE MONEY, and of course learn how to not be selfish so that you can actually enjoy your time living together. No idea if I know what I'm talking about, it just sounds right to me. 

Also, that's not to say that all Boomers lived beyond their means, but I think most will admit that the 2008 crash had a lot to do with the way the financial system was set up to take advantage of Boomer driven market growth, and what that system then had to do in order to continue growing in a more difficult era. 

Edited July 5, 2022 by BrettD
murky sentence

[JettsPapa]

On 6/17/2022 at 11:18 PM, lefty o said:

about the only thigs in life one needs to pay interest on are house, and car loans. no point in paying interest on stuff that you can get if you just save up for it. never buy things you dont absolutely need to survive, if you dont have the funds for it, good way to go broke, and stay broke. of course, not every one thinks like i do when it comes to money.

I will respectfully disagree.  It's very possible to live without car loans.  You may not be driving the latest, coolest car, but it can be done.  I tend to buy vehicles that are a few years old and drive them until they're no longer dependable.  I'm currently driving a 2007 Chevrolet pickup with well over 250,000 miles on it.  It doesn't look pretty, but it gets me from point A to point B.  I spend a little on maintenance and repairs, but it's a lot less than payments would be.

That reminds me of about 15 years ago when my daughter was going into junior high school and wanted to be in band.  We went to a music store to get her a clarinet.  I pulled into the parking lot full of nice shiny new cars and SUVs, went in, found a clarinet, wrote a check, and left.  Most of those new shiny vehicles that were there when I arrived were still there when I left.  The parents were inside filling out paperwork to finance their children's band instruments.

[BeeD]

Most people under 40 probably can't buy a used vehicle that is only a few years old without taking out a loan. I would guess that more than 75% of people under 30 couldn't buy a $5,000 car right now without taking out a loan. I hate to say it, but I'm pretty sure this hobby is carried by people who took out loans for things that were more important to them, including that 50 inch LED TV. 

[JettsPapa]

On 7/6/2022 at 11:55 AM, BrettD said:

Most people under 40 probably can't buy a used vehicle that is only a few years old without taking out a loan. I would guess that more than 75% of people under 30 couldn't buy a $5,000 car right now without taking out a loan. I hate to say it, but I'm pretty sure this hobby is carried by people who took out loans for things that were more important to them, including that 50 inch LED TV. 

Maybe, but it doesn't need to be just a few years old.  I'd rather drive a 10-year-old car that's paid for than a new one that had a 7 year payment plan.

[AquaHobbyist123]

It is never wise to get in debt if you can help it in any way.

[BeeD]

On 7/6/2022 at 12:45 PM, JettsPapa said:

Maybe, but it doesn't need to be just a few years old.  I'd rather drive a 10-year-old car that's paid for than a new one that had a 7 year payment plan.

I agree. I think that's a good way to go about it. 

[Guppysnail]

I agree. I only use my cc because it cash back so I pay the entire amount each month and they pay me to use the card. 🤣 when I retired I got rid of everything I had a payment on. @JettsPapaSwitched my 2010 Benz with monster payments for a used 2003 Volvo I paid cash for that still runs like a champ for my fish store jaunts 🤣🤣🤣 buy now pay later is a danger in my opinion. Hobby’s to me are disposable income only purchases. 

[JettsPapa]

On 7/6/2022 at 1:24 PM, Guppysnail said:

I agree. I only use my cc because it cash back so I pay the entire amount each month and they pay me to use the card. 🤣 when I retired I got rid of everything I had a payment on. @JettsPapaSwitched my 2010 Benz with monster payments for a used 2003 Volvo I paid cash for that still runs like a champ for my fish store jaunts 🤣🤣🤣 buy now pay later is a danger in my opinion. Hobby’s to me are disposable income only purchases. 

I haven't had a credit card in many years.  Any place that will take a credit card will take a debit card, and you can't get in debt with a debit card.

[AquaHobbyist123]

Debit Cards certainly require a lot more discipline.

[Hannah Parker]

I'm really glad Cory made this decision as well. As well as supporting the debt-economy, I feel like this could definitely increase the amount of impulse fish purchases if it was implemented, which is bad for the fish as well. 

Credit cards freak me out and I hate that you need them for a good credit score. Luckily I have a fiancé who is extremely smart with money and who I share an Amazon credit card with as an authorized user, which has helped my credit score! I buy $25-100 of stuff a month and pay it off by the deadline next month and that's plenty of credit card use for me! I use it for the little stuff I regularly get off Amazon like cat/dog treats, toiletries, etc. 

[eatyourpeas]

I have the worst credit score! No debt, a 22 year old manual transmission car, yes to cc because it helps me keep track of where I spend money (Coop topping the list these days 😉), but they get paid off every month.

I do not like owing money. Simple. Always been that way. 😎

[JettsPapa]

On 7/12/2022 at 10:08 AM, eatyourpeas said:

I have the worst credit score! No debt, a 22 year old manual transmission car, yes to cc because it helps me keep track of where I spend money (Coop topping the list these days 😉), but they get paid off every month.

I do not like owing money. Simple. Always been that way. 😎

Good for you.  If you don't plan to borrow money you don't need a credit score (or as Dave Ramsey refers to it, the "I love debt score").

[BeeD]

On 7/12/2022 at 2:22 PM, JettsPapa said:

Good for you.  If you don't plan to borrow money you don't need a credit score (or as Dave Ramsey refers to it, the "I love debt score").

I'm a little afraid of stepping into politics in this thread, but I do kind of think the kids would all be better off if their schools required a Dave Ramsey curriculum. Even the kids who are barely paying attention will learn something that will be of immense value. We would not have been able to buy a house if I hadn't taken at least some of his advice. 

[lefty o]

On 7/12/2022 at 4:41 PM, BrettD said:

I'm a little afraid of stepping into politics in this thread, but I do kind of think the kids would all be better off if their schools required a Dave Ramsey curriculum. Even the kids who are barely paying attention will learn something that will be of immense value. We would not have been able to buy a house if I hadn't taken at least some of his advice. 

kids should be taught dollars out should not exceed dollars in as a minimum.